Renting vs. Buying a House in 2026
The new normal of the 2026 housing market has made the choice between renting and buying more personal than ever. With shifting interest rates and evolving inventory in Missouri and Illinois, deciding whether to sign a lease or a mortgage is a strategic choice for your long-term wealth.
What are the pros and cons of buying a house in Missouri or Illinois?
Buying a home in 2026 offers the advantage of fixed-rate stability and long-term equity growth, but it typically requires a larger upfront investment.
Ready to start your journey? Watch our quick guide on how to navigate today’s real estate market and find the right home for your budget.
The Pros of Buying
- Wealth Building: Buying a home turns your monthly housing cost into a long-term investment, building equity in an asset that historically gains value.
- Predictable Costs: A fixed-rate mortgage locks in your monthly payment, providing financial certainty and keeping your housing costs stable as inflation fluctuates.
- Tax Benefits: You may be able to take advantage of specific tax deductions, though these benefits depend on your individual tax situation. Be sure to consult with a tax advisor.
- SCU Tip: Get pre-approved with a mortgage from Scott Credit Union to know exactly what you can afford. Our local experts understand the specific nuances of the MO and IL markets.
The Cons of Buying
- Upfront Costs: Before you start house hunting, make sure you have enough cash ready to cover a down payment (typically between 3% and 20%) and final closing costs.
- Maintenance: When the water heater breaks at 2 a.m., the repair bill is yours.
Did you know you can shop for a mortgage without hurting your credit score? Learn how to save thousands on your loan in this short video.
What are the pros and cons of renting a house in Missouri or Illinois?
Renting in 2026 provides maximum flexibility and lower upfront costs, though you miss out on building equity.
The Pros of Renting
- Flexibility: Renting can be a smart move if your life is in flux or you plan to stay in an area for fewer than five years.
- Zero Maintenance: Your landlord is responsible for all repairs and upkeep, saving you both time and unexpected expenses.
- Lower Entry Barrier: You typically only need a security deposit and the first month’s rent to move in, keeping your capital free for other investments.
The Cons of Renting
- Unpredictable Rents: Landlords can—and often do—increase rent annually.
- No Ownership Rights: You usually can’t remodel the space to your liking, and the owner could decide to sell the property at the end of your lease.
How to Use the SCU Rent vs. Buy Calculator
To get a clear mathematical answer, use the SCU Rent vs. Buy Calculator. Here’s how to fill it out for the most accurate results:
- Home Price & Rent: Enter the price of the home you want to buy vs. what you would pay for a similar rental.
- Down Payment: Enter the cash you have saved. A larger down payment can often eliminate the need for monthly mortgage insurance.
- Interest Rate: Use the current 2026 average mortgage rate, which is hovering just over 6% for a 30-year fixed, to see your projected monthly costs.
- Duration: This is the most important field. If you plan to stay for 7 years or longer, buying almost always pulls ahead due to equity buildup.
Ready to stop renting and start owning?
Whether you need a low-down-payment option, a traditional fixed-rate loan, or even a no-down-payment loan, Scott Credit Union is with you throughout your journey. Explore our mortgage options today and see if 2026 is your year to buy!
Written by Scott Credit Union
